A USDA Home Loan is a mortgage loan that is a 100% purchase loan. These are loans that offered in a rural areas. This allows borrowers to eliminate the need for a down payment. This program does have income and debt limitations.

Currently many lenders require a minimum score of 620. In 2009 the National Average for Credit Scores, a survey conducted by Experian, was 692. The borrower must have the a credit history that indicates a reasonable willingness to meet credit obligations as they become due.

An other requirement to consider for a USDA loan program is debt to income rations. The first ratio is calculated by adding the monthly principle, interest, tax and insurance and dividing it by your gross monthly income. This debt ratio can not exceed 29% The other ratio is calculated your total monthly debt divided by your gross monthly income. This debt ratio can not exceed 41%.

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